Bond Market Update

Data Recon

• The November ISM Manufacturing Index checked in at 48.2% for November (Briefing.com consensus: 49.0%), down from 48.7% in October. The dividing line between expansion and contraction is 50.0%, so the November figure, which is the ninth straight month below 50.0%, suggests manufacturing activity contracted at a faster pace than the prior month.
  • The key takeaway from the report is that the manufacturing sector resembled a sector in a state of stagflation in November, punctuated by a faster pace of contraction, rising prices, and weakening employment.
• Yield Check:
  • 2-yr: +4 bps to 3.53%
  • 3-yr: +4 bps to 3.53%
  • 5-yr: +5 bps to 3.65%
  • 10-yr: +7 bps to 4.08%
  • 30-yr: +7 bps to 4.74%